Fiduciary Responsibility

Our Commitment to Fiduciary Responsibility

Investment advisors have a fiduciary responsibility to put your best interests above their own. When you are choosing your portfolio manager, consider these differences between having an investment advisor and someone else manage your portfolio:

Fiduciary vs. Advisor

We are required to provide our clients with “fiduciary care’ – to act in your best interests. Designations such as CFP®, ChFC, CFS and CLU do not establish a fiduciary relationship. Nor does FINRA – holders of Series 7 and other examinations are required only to make “suitable” recommendations.” Stockbrokers are not fiduciaries. They are in the business of selling investments.

Fees vs. CommissionsInvestment advisors do not and cannot earn commissions on investment account transactions, and therefore have no incentive to actively trade your account. If a brokerage firm manages your portfolio, their representative typically earns commissions on trades in your account. They are paid for transactions, not advice.Transparent Fee Structure vs. Hidden Fees
Most investment advisors are compensated directly and only from you, with the fee based on the size of your portfolio. You both have incentives for your account to grow. Brokers and “financial planners” may receive compensation through complex, overlapping and often hidden arrangements, none of which typically relate to the success of your investments.